Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-07-30
A HISTORY.
GOV. STANFORD BEFORE THE
RAILROAD INVESTIGATORS.
He Gives a History OF the Central
Pacific Company, and Clears
Away Misrepresentation.

He Gives a History OF the Central
Pacific Company, and Clears
Away Misrepresentation.
Governor Stanford, as President OF the
Central Pacific Railroad Company, ap-
peared before the United States Railroad
Investigation Commission at San Francisco
on Thursday, at the request of that body,
to testify. He said that he had received
the interrogatories of the Commission,
fifty-eight in number. He had prepared
answers to them all, which ne would read.
Before reading the interrogations and pro-
posed answers the Senator read prelimi-
nary statement, giving a complete his
tory of the construction of the road. He
prefaced the statement by remarking that
this was the first time the company had
ever had an opportunity of presenting a
true history of the road, land" said he,
there have been more misrepresentation
and more falsehoods told about the COM
pany than any one not familiar with the
subject can possibly conceive Of" He
then proceeded to read the history he had
prepared, and also his responses to the in
terrogatories, as follows:
| HISTORY OF THE ROAD.
MesTs Robert E. Pdttison (Chairmdn) E. EUery
| anderson and David T. Littler-GENTLEMEN Your
communication, dated New York, May u, 1887,
requesting me to answer the interroga tions con-
tanned therein. was duly received, has been
carefully considered and submit herewith my
replies thereto.
did not have personally the information
necessary to answer some Of the interrogatories,
and, agreeably TO your request, referred them to
those persons who possessed such knowledge
Their efforts verified by their atfidavits, are at
tached as exhibits to and are made part of my
answers TO your communication.
The creation of this Commission, charged by
Congress with the duty of examining Into the
workings and financial management of all rail-
roads that have received aid in bonds from the
| Government" was an honest and candid ad-
mission by Congress that there were equities ex-
sting in favor of the railroads in question which
should be inquired into and to the full benefit of
which they are entitled. l know that such
equities do exist in favor of the roads repre-
sent, and am pleased that an opportunity has
at length been offered to insure their full and
! impartial consideration, both by it and by the
people al large
1t will be readily admitted that the examina-
ton contemplated by the Act and with the
making of which examination you have been
charged, could not be held without the consent
of this company, whose affairs it was thus de-
sired to examine.
ORGANIZATION OF THE COMPANY.
| The Central Pacific Railroad Company was
organized on the 9th day of June, 1861, under
the laws of the State of California, and has ever
since been, and now is, carrying on and trans
acting its business under and in accordance
with the laws of this State. In that particular
its relations and obligations to the Government
| are entirely different from those OF the compa-
MES which were created by and under Federal
statutes. Congress has control over such cor
porations, even to the extent, perhaps, of taking
| away their charters but as to the Central Pa
cifc, even though all the laws of Congress re-
latlng thereto, and under which its relations to
the National Government are defined were re-
pealed, it would still exist as legal corporation
and continue to do business as such under and
in accordance with the laws of the State relat
ing to railroad corporations After diligent
search have been unable to find anything in
that contract which authorizes any investiga-
ton of this kind to be made.
Notwithstanding all this, however, we meet
you most cheerfully in this matter. We shall
furnish you full and detailed answer to each
and every one of the ffty-eight propositions
and interrogatories contained in the communi-
| cations hereinbefore mentioned.
TOPIC FOR PUBLIC DISCUSSION
The construction of the Pacific Railroad to
unite the Atlantic States with the States and
| Territories of the Pacific was the leading topic
| of public discussion from the termination of the
| Mexican war until the road was finally COM
pleted in May, 1869. This subject occupied the
attention of political Conventions in nearly
every State of the Union, and Congress was
overwhelmed with petitions and memorials urg-
ing the extension of Government aid TO the en-
| terprise. Public sentiment compelled the Ma
tional Conventions of both political parties to
declare in favor of the construction of the road
as military and commercial necessity.
Prior TO 1860 surveys and examinations were
made by the War Department of various routes
across the continent. The southern route, on the
thirty second parallel, was regarded as the only
route upon which it was practicable to construct
a transcontinental railroad. 1t was understood
that the northern and central routes were i'm
passable in winter on account of the deep SHOWS
in that region, and, besides. the mountains
themselves were represented as imposing i'm
passable barriers to the construction of rail
road. Pending the discussion of the question,
the Civil War closed the southern route and rem
dered it impossible for the United States to avail
Itself of the advantages supposed to exist on the
|
option. If the road was built, either the north
ern or central route must be adopted The war
made it clear to every citizen that road con
meeting the Pacific with the Atlantic was po-
litical necessity.
ROAD MUST BE BUILT.
The discussions which have already taken
place with respect to the several routes across
the continent had impressed the financial world
with the impracticability of constructing rail-
road on the central line. Congress, however,
resolved that road must be built and to that
end, in 1862, passed an Act IN aid of its con-
struction. The Act provided for the organiza-
/ ton of the Union Pacific Railroad Company to
construct the road from the Missouri river to the
eastern line of California, and authorizedthe Cen
trail Pacific Railroad Company to construct the
balance of the road through that State. At the
| time of the organization of the Central Pacific
in 1861, the great Comstock lode in Nevada was
being rapidly.developed and a vast amount of
freight was being carried over the mountains
by teams. 1t was for the purpose of doing this
business, for which there was no competition,
exceptteams oyerthe mountains, that the pro-
Jectors of the Central Pacific Railroad organ
lied that company. They would not have at
tempted to scale the Sierra Nevada mountains
with railroad against other competition On
| the line of the road across the continent for a